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Avivas Harvey named as shareholders guardian

THE guardian of new corporate-governance rules — the Association of British Insurers (ABI) — will this week appoint Richard Harvey, the chief executive of Aviva, as its new chairman.

But as a pursuer of fat-cat bosses, the ABI is likely to be embarrassed by the fact that Harvey himself was the subject of criticisms over his pay deal at Britain’s biggest insurer.

His package rose by 45% to £1.4m last year, just as the company was slashing its dividend, reporting a drop in operating profits and cutting payouts for policyholders.

Harvey’s two-year appointment in a part time role at the ABI will be confirmed on Wednesday. He will take over from Mike Ross, who is also the chief executive of Scottish Widows, as the public face of the insurance industry.

The ABI’s members own a fifth of UK equities, which makes it one of the country’s most powerful trade organisations. With the